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Profits and jobs are not the same thing. Much manufacturing in the USA has gone automated. Same production, fewer workers.
Between the workers themselves, the unions, and the government adding new expenses for employing a worker, American workers have priced themselves out of the market( in some fields, not all fields).
American workers have NOT priced themselves out of the market. They have been priced out of the market. Since most unions are now weak or disbanded how do you explain how American workers have pricing power? Why are they not price takers in competitive markets? Are you suggesting that there is not enough competition for jobs?
If a worker has to rent a hammer at $200 dollars an hour and charges $201 an hour has the worker priced himself out of the market or has his access to a hammer done so? If an income and excise taxes are a $100 and then is forced to charge $301 an hour, has he priced himself out of the market? If the rent raises the cost to $1000 dollars an hour, and he charges $1001 what has priced him out of the market?
The FIRE sector and rent extraction has priced them out of the market.
Shifting taxes off property onto employment and retail sales spurs the financialization of family and business budgets as tax cuts on property are capitalized into higher bank loans. Payments to government agencies for taxes and pre-saving for Social Security and Medicare absorb another 30% of family budgets.
Housing (ownership or rental costs) 32 – 40%
Debt service (non-mortgage) 15%
FICA withholding for Social Security and Medicare 15%
Taxes (income, sales and excise or VAT) 15%
These transfer payments to the FIRE sector and government agencies have transformed international cost structures, absorbing roughly 75% of U.S. family budgets. This helps explain the deteriorating U.S. industrial trade balance as the economy has become financialized.
American workers have NOT priced themselves out of the market.
Judging by the graph, they have more than earned their keep. Unfortunately, when you improve the efficiency of the worker, and the supply of work does not increase, you wind up with a net loss in jobs. So as each worker is making someone else richer, the worker is facing a situation where their bargaining power is diminished, and their prospects elsewhere does not appear any more optimistic.
Profits and jobs are not the same thing. Much manufacturing in the USA has gone automated. Same production, fewer workers.
Between the workers themselves, the unions, and the government adding new expenses for employing a worker, American workers have priced themselves out of the market( in some fields, not all fields).
I suppose I should read the OP's referenced article, but I'd bet a dollar that as a percentage of employed population, manufacturing jobs are far lower now than in the 60's.
To top this off, manufacturing employment in the US peaked in 1979.
That was a very unprofitable decade for US corps. Now they have rightsized, operate far more productively, and enjoy great profits, which facilitates long-term viability.
Judging by the graph, they have more than earned their keep. Unfortunately, when you improve the efficiency of the worker, and the supply of work does not increase, you wind up with a net loss in jobs. So as each worker is making someone else richer, the worker is facing a situation where their bargaining power is diminished, and their prospects elsewhere does not appear any more optimistic.
One of those reasons is workers are often a source of new competition when they can raise capital. Since their bargaining power has diminished, so has a source of new entrepreneurs now starved of capital.
That was a very unprofitable decade for US corps. Now they have rightsized, operate far more productively, and enjoy great profits, which facilitates long-term viability.
Oh nice, so a failed market is a good thing now.
A team in the Superbowl that outscores another by 35 points is also looking pretty viable. Garbage time is so entertaining to watch. A 3 point lead is precarious , and cause both teams to compete.
confusing financial wealth with progress driven by competition in a competitive market. Its no different that a human body. We do not want companies to starve but this is looking more like monopolistic obesity.
Once again a complete train wreck of economic understanding confusing financial wealth with progress driven by competition in a competitive market.
Financial Wealth= future viability = Long-lasting jobs
That is why we should delight in Financial Wealth, delight in being competitive, delight in wiining economic battles.
We recovered from a train wreck. We corrected long-existing inefficiencies. And we added 4 million new net jobs over 2 years, with GDP growth several times the EU's.
Enjoy it. It has been a long time coming.
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